Number of mortgages in arrears continues to fall despite interest rate hikes

The number of homeowners who are in arrears on their mortgage continues to fall, although the Central Bank has said it remains “vigilant for emerging issues” amid high inflation and the sequence of interest rate hikes.

Central Bank figures show that the number of private dwelling house mortgage accounts in arrears during the second quarter of the year fell by almost 4 per cent.

At the end of June 2023, there were 712,347 private residential mortgage accounts held in the Republic of Ireland, with a value of just under €100 billion. Some 46,891 of these were in arrears, a decrease of 1,889 over the quarter.

The overall decrease in the second quarter was driven by a decline in accounts at both extremes of arrears – those with arrears of more than one year and those that were less than 90 days behind in their payments. But there was an increase in accounts in arrears for between three months and one year.

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The number of mortgages with long-term arrears fell 2.8 per cent to 21,400 while the number of accounts with arrears of up to 90 days fell by 9.9 per cent to 17,545.

The outstanding balance on family home accounts in arrears of more than 90 days was just over €5.8 billion at the end of June, equivalent to just under 6 per cent of the total outstanding balance on all private dwelling mortgage accounts.

Around 13 per cent (5,886) of accounts in arrears are currently part of a legal process, and 14 homes were repossessed by lenders in the second quarter. Lenders held 410 repossessed properties at the end of the first half of the year, down from 457 at the end of March.

Deputy governor of consumer and investor protection at the Central Bank, Derville Rowland, welcomed the continuing decline in mortgage arrears, but said the Central Bank “remains vigilant for emerging issues in the current economic environment”.

“If you are dealing with any financial difficulty and have concerns about paying your mortgage, do engage with your mortgage provider as they have a wide range of options available to support you through any difficulties,” she said.